16 January, 2026
The blocks span five sedimentary basins and will be awarded based on technical capacity, work programme commitments and signature bonuses, with winners expected in July 2026.
In a decisive move to further strengthen Nigeria’s upstream petroleum sector, the Federal Government officially opened the 2025 Oil Licensing Round on December 1, 2025, placing 50 oil and gas blocks on offer to investors. The initiative is designed to grow the nation’s hydrocarbon reserves, attract foreign direct investment, deepen Nigerian content development, boost production, expand gas utilisation, generate revenue, create jobs, contribute to long-term global energy security, and create value for both government and investors, thereby amplifying the gains of the Petroleum Industry Act (PIA) 2021.
The pre-bid conference, organised by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) as mandated by Sections 73–78 of the PIA, was held on Wednesday, January 14, 2026, at Eko Hotel and Suites, Lagos. The event brought together major industry players, prospective bidders, financial institutions, and key stakeholders to outline the framework and expectations for the bid exercise. Discussions at the conference emphasised transparency, regulatory predictability, and the urgent need for accelerated development of Nigeria’s domestic hydrocarbon resources.
Speaking at the event, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, stated that the global conversation has evolved from energy transition to energy integration, noting that fossil fuels still account for more than 50 per cent of global energy supply. He warned that the era of speculative holdings and status-symbol licences was over, stressing that the government would enforce a strict drill-or-drop policy, particularly as most of the assets on offer were reclaimed fallow blocks.
According to the minister, licences remain the property of the Federal Government and are not trophies for idle possession. Assets that remain undeveloped beyond stipulated timelines risk revocation.
“There will be no refund of bidding fees or signature bonuses, and no post-bid adjustments,” Lokpobiri said, urging bidders to thoroughly assess their technical and financial capacity before participation. He added that the government would not assume responsibility for liabilities arising from poorly planned bids. He described the reforms under the PIA as central to reshaping Nigeria’s upstream landscape by ensuring that assets are awarded strictly on technical competence and credible work programme commitments.
The newly appointed NUPRC chief executive, Mrs Oritsemeyiwa Eyesan, reinforced the government’s call for disciplined and responsible investment. She announced a reduction in entry costs, including revised signature bonuses and fees payable before first oil, a move designed to lower barriers to entry and position Nigeria as a preferred hydrocarbon investment destination in Africa.
Eyesan noted that many of the assets now available were recovered through the effective implementation of the PIA, reflecting the commission’s commitment to revitalising fallow assets and expanding indigenous participation in the sector. While acknowledging the critical role commercial banks play in industry growth, she cautioned that over-reliance on traditional banking finance was unsustainable, as disruptions in the financial sector could negatively impact upstream development. She therefore underscored the need to broaden financing options across the industry. Stating that the Commission was behind schedule, they will be starting the preliminary works for 2026 bid round in parallel to the 2025, in other to achieve finalization this year.
The 50 blocks span diverse geological terrains, with allocations across the Niger Delta (35), Benin Basin (3), Anambra Basin (4), Benue Trough (4) and Chad Basin (4). The assets include 31 onshore blocks, 18 shallow-water blocks, one deep offshore block, and frontier acreages.
Senior officials of the NUPRC provided a detailed breakdown of the bidding process, clarifying the registration fee for participation at $10,000USD and the application plus processing fee for $25,000USD, assuring participants of a transparent and competitive exercise. Bids will be evaluated using three parameters: signature bonus, work programme commitment and weighted technical score. Frameworks covering disqualification criteria, bid guarantees, licence awards and contractual modes were also clearly explained, followed by a robust question-and-answer session and stakeholder networking.
Further underscoring the significance of the 2025 Licensing Round, ranking members of the National Assembly expressed strong legislative support. The chairman of the Senate Committee on Gas, Senator Jarigbe Agom Jarigbe, commended the inclusion of gas assets in the round and aligned it with the President’s production growth target of 2 million bpd by 2026. Meanwhile, the chairman of the House of Representatives Committee on Upstream, Hon. Ado Doguwa, reaffirmed that laws are dynamic, describing the PIA as a work in progress and pledging continued legislative reviews to enhance business competitiveness and regulatory best practices that ensure shared value for all stakeholders.
As momentum builds, Nigeria’s upstream petroleum industry appears firmly on a growth trajectory. With timelines set and competition intensifying, stakeholders have returned to their respective organisations as the commission moves toward July 10, 2026, when successful and reserve bidders are expected to be announced, followed by ministerial approval on the same date.
SPE Lagos Section 61: Leading the way in oil and gas excellence, innovation, and sustainable energy solutions since 1973.
Copyright © SPE Lagos, 2026. All rights reserved.